1.29GW of battery storage wins contracts in UK’s T-4 Capacity Market auction

By Molly Lempriere
LinkedIn
Twitter
Reddit
Facebook
Email

The UK’s T-4 Capacity Market auction has cleared in its third round at a record high of £63 (US$75.9)/kW/year, more than double the previous record high price.

Of the ~46MW of pre-qualified capacity eligible for the 2026/27 auction, 46,031.692MW won contracts, representing 93.42%.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Significantly, the number of battery storage assets continued to grow. Of the 1.9GW of de-rated capacity to pre-qualify, 1.29GW secured contracts.

The T-4 is the mechanism by which the government contracts four years in advance for energy capacity to advance the UK’s energy security aims.

This follows last year’s significant growth, which saw a ~800MW jump in capacity that pushed the contracts above 1GW. This split between 107 units, with more than 60% of this storage over two hours in duration.

Of this year’s 143 winning battery storage units, over 90% have contracts with a 15 year duration.

Renewables also surged, with 76.85MW of onshore wind, offshore wind and solar winning contracts. This is eight times the volume that won contracts last year, even if it remains a small segment of the overall capacity procured.

The T-4 results follow last week’s T-1 2023-24 Capacity Market auction, which cleared at its second highest price ever, with 5,782.777MW procured at a clearing price of £60/kW/y. That included 627MW of battery storage, with T-1 auctions contracting one year ahead.

Gas remained the big winner in the auction, growing to over 29GW, leading to questions around its use given Britain’s goal of a net zero electricity system by 2035.

To read the full version of this story, including a breakdown of all awarded Capacity Market Units (CMU) by generation type and capacity awarded, visit Current±.

Read Next

July 17, 2025
Contemporary Amperex Technology Ltd (CATL) has signed a framework supply agreement for a project to export renewable energy from Indonesia to Singapore.
July 15, 2025
AMEA Power has completed commissioning of the first large-scale battery energy storage system (BESS) in Egypt, ahead of the start of commercial operations.
July 15, 2025
Utility and power firm Engie has acquired two BESS projects from Recurrent Energy in Italy, totalling 200MW of capacity.
Premium
July 15, 2025
Japan’s energy storage market is experiencing a wave of significant growth, as ESN Premium hears from Eku Energy and BloombergNEF.
July 10, 2025
Indonesia’s national Consumer Protection Agency (BKPN) will coordinate at least US$1 billion in investment for off-grid solar-plus-storage.

Most Popular

Email Newsletter